RODOLFO VLLLANUEVA AND/OR PHILIPPINE EXPRESS AGENCY, PETITIONERS, VS. COURT OF INDUSTRIAL RELATIONS, ET AL., RESPONDENTS.

Appeal by certiorari taken by
Rodolfo Villanueva and/or Philippine Express Agency from a decision of the
Court of Industrial Relations (Case Nos, 1051-V and
1110-V) ordering them to pay the salaries, wages and overtime pay of the
officers and crew of the vessel M/V Regina from January 18, 1956 until the date
of their discharge, and from its Resolution en banc of May 20, 1960 denying
their motion for reconsideration.

It appears that on December
20, 1955,
a Bareboat Charter Contract of the vessel M/V Retina, owned by the Royal Lines,
Inc., for cargo service between the Philippines and nearby ports, was executed
between Rodolfo Villanueva, General Manager of the Philippine Express Agency,
as charterer, and Joseph Gotianuy,
as General Manager of the Royal Lines, Inc. The contract was for a period of
one month from the date of the delivery of the vessel to the charterer at the Cebu Harbor in
good seaworthy condition, and provided, among other things, that the charterer shall ‘provide his own officers and crew and pay
for all provisions and wages of crew, * * * ” and “be solely responsible and liable for any
claim for compensation or damages that may be sought or demanded by the crew or
any other person employed by them on board said vessel”.

The vessel left lloilo
for Hongkong: with a load of 1,000 tons of sugar, but
the trip suffered delays because the vessel developed several defects which had
to be repaired. By reason thereof, the original set of officers and crew
members under Capt. Villanueva resigned and the charterer
brought in another set of officers and crew under Capt. L. del Casal (one of the respondents herein) on January
18, 1956.

The ship finally sailed for Hongkong on January 23, 1956. Before reaching the mouth of Hongkong Bay, her engine stopped and tugboats
had to be used to help her dock at Hongkong-which she
did on February 4, 1956.

On March 26,
1956,
admiralty jurisdiction action No. 5 of 1956 against the M/V Regina was filed in
Hongkong for the recovery of the salaries of the
officers and crew and the debts incurred by the vessel while in that port. As a
result of these proceedings, the vessel was sold judicially for HK$340,000,
from which were paid the various claims against the vessel in the total sum of
HK$329,806,18. Among the items paid were the salaries
of the crew amounting to HK$12,326.71 or P4,326.95.

On February 9,1957, the officers
and crew of the M/V Regina filed a petition for payment of wages and overtime
claims with the Court of Industrial Relations (Case No. 1051—V), but the case
was later withdrawn, without prejudice to filing another in a competent court.
On October 8, 1958, they refilled their petition with the same court where it was
docketed as Case No. 1110-V, alleging that they were the officers and crew
members of the M/V Regina from January 18 to May 15, 1958; that respondent
Joseph Gotianuy was the president and general manager
of the Royal Lines, Inc., owner of the M/V Regina during the same period; that
respondent Rodolfo Villanueva and/or Philippine Express Agency was the charterer of the vessel for the period stated above; that
they were not paid their wages and overtime pay for services rendered during
said period in the total amount of P38,557.15, and that, despite demands made
on respondents, the latter refused to pay the same.

Herein petitioners’ answer alleged,
inter alia, that the Court of Industrial Relations
had no jurisdiction over the claims; that the claims were already barred by a
prior judgment; and that the vessel’s inability to put to sea at the port of Hongkong extinguished all rights of action arising therefrom, the wages and salaries being considered merely
as general average, in accordance with maritime law.

After trial, the Court rendered the
appealed judgment, sentencing:

“(a) Rodolfo Villanueva and/or
Philippine Express Agency—the payment of salaries, wages and overtime of
the officers and crew from January 18, 1956 until the time of their
repatriation as appearing in Exhibit ‘B’ (Case No, 1051-V) “herein before
“reproduced.”

“(b) Joseph Gotianuy and/or Eoyal Lines,
Inc., —the payment of salaries, wages and overtime of Cesar L. del Casal, Serafin Cruz, Jesus
Ignacio, Eladio Sarmiento
and Zoilo Polcat from May
12, 1956 until they were repatriated.”

It is obvious that the present
proceeding is exclusively for the recovery of unpaid wages and overtime pay. In
this connection it is already settled law that such claims may be taken
cognizance of by the Court of Industrial Relations only if, at the time of the
filing of the claim, the claimants were still in the service of the employer,
or having been unlawfully or improperly separated from such service, should ask
for reinstatement; otherwise, such claims should be brought before the regular
courts (Nassco vs. CIR et al., 107 Phil., Pan American World Airways etc. vs. Pan American
Employees Association, 111 Phil., 126).

Wherefore, the decision and resolution appealed from are set aside, without prejudice to the filing of the claims
involved in this case with the competent court. With coats.

Bengzon, C.J., Padilla, Bautista Angelo, Labrador, Concepcion, Reyes, J.B.L., Barrera, Paredes, Regala and Makalintal, JJ., concur.